At the Roadshow in Beijing today (Aug. 25), Thailand’s Deputy PM and Commerce Minister, Dr. Somkid Jatusripitak, announced, “This roadshow is a major step in bringing Thai listed companies to meetings with leading Chinese institutional investors. During the past four years, Thai-China bilateral trade amounted to USD15 bln. and is expected to reach USD40 bln. during the next two years. There are about 300 Chinese companies making direct investments in Thailand. The value of direct investments from China has been growing at an average of 30-40% annually and is expected to be around 40% for 2005. This event is an excellent opportunity for us to present useful information and promote investment opportunities in the Thai market.” Also, Thailand’s strategic plans -- which have been developed to cater to the specific needs and strong points of each of China’s strategic cities in terms of bilateral trade, investment opportunities and tourism-- were presented.
The Thai government presented three aspects of its country’s competitive advantages: 1) Thailand’s strategic location on the threshold of the ASEAN region, 2) the nation’s stable economic and political environment, and 3) the THB1.7 trillion (approx. USD41.46 bln.) investment in mega-projects during the next five years will greatly boost the Thai economy.
Finance Minister Dr. Thanong said, “To draw in (direct and indirect) investments from China, strengthening ties at all levels in all of China’s strategic cities must be continually undertaken. Therefore our next step will be to invite China’s young entrepreneurs in the YPO (Young Presidents Organization) to visit Thailand and meet with our country’s top-level executives.”
The minister noted, “China has a huge pool of foreign reserves worth over USD750 bln. that can be allocated for investment opportunities abroad. Currently, investments from China to Thailand are still low and are primarily done via the investment banking firms in Hong Kong. To expand this existing investment channel, Thailand has to try harder to attract more incoming funds.
“The Thai government has been providing support by building our country’s essential infrastructure, whether it be financial, legal, or social. The mega-projects is one of the government’s attempts to encourage foreign investments and trust. In the past the Thai capital market focused on attracting funds from the West. Now, with the opportunities and potential found in China, Thailand has to pay more serious attention to China and take a more proactive approach.
China’s Vice Minister of the State-owned Assets Supervision and Administration Commission (SASAC), Mr. Shao Ning, presided over the Roadshow opening and expressed his congratulations on the strong, decades-long Thai-Chinese relations that have helped a great deal in our two countries’ mutual development.
Chairman of Charoen Pokphand Foods Mr. Dhanin Chearavanont, which currently has many investments in China, encouraged Chinese investors to invest in Thailand. He said, “Thailand and China have maintained a very close relationship. The presence of Thailand’s Deputy PM here has shown that he places great importance on continued Thai-Chinese economic relations.
“On this auspicious occasion at which we celebrate the 30th year of Thai-Chinese relations, the Thai companies hope to see more Chinese funds coming to Thailand. 16 leading Thai companies are participating in the roadshow to present information and introduce to Chinese investors how the Thai stock market operates. Once they see how we operate, they will be encouraged by the possibilities our market presents to suit their investment objectives. We would very much welcome investments from large Chinese companies. The Thai market is important in that it lies at the threshold to the ASEAN market, and the combined value of ASEAN’s imports and exports make the region the fifth most important in the Chinese market .
Executive Vice President of The Stock Exchange of Thailand (SET) Ms. Sopawadee Lertmanaschai reported that, “The roadshow has been well-attended by about 80 Chinese investment bankers and institutional investors representing 42 institutions, including the CITIC Group, LB RICHLAND Investment Management Co. Ltd., China Emerge Investment Corporation, the Bank of Beijing and the ABN AMRO Xiangcai Fund.
“Mr. Shao Ning, a top-level executive of China and a number of Thailand’s top-level executives were also at this event. It’s fortunate that the roadshow can bring together economic leaders from the two countries to meet. As an organization in the capital market, the SET hopes that this will benefit Thailand’s economy as well as its capital market. The roadshow also drew the attention of members of the Chinese press who are representing about 10 newspapers and TV media,” the SET EVP said.
As she went on, “This afternoon (of Aug.25) the Thai delegation, led by the Deputy PM and Commerce Minister; Finance Minister, and Chairman of the Federation of Thai Capital Markets Organizations, Dr. Kongkiat Opaswongkarn, visited the China Securities Regulatory Commission (CSRC). Among the interesting issues to be discussed with Mr. Shang Fulin, the Chairman of CSRC, was the personal tax on bond trading in China. Another issue discussed was the listing of about 10 alcohol-related business on the Chinese stock markets.”
